Author(s)

Christos E. Kountzakis

Department of Statistics and Actuarial-Financial Mathematics, University of the Aegean, Mytilene, Greece.

In this paper, we present stochastic differential equations related to the cost variables of the shipping market. These SDEs arise under the addition of stochastic terms on the deterministic differential equations concerning the same variables. The financial interest arises from the fact that these SDEs may be used for the valuation of derivatives on these variables, such as futures, options, and others.

Transport Costs Per Unit of Cargo Turnover, Deadweight, Optimum Speed

Kountzakis, C. (2017) Valuation of Derivatives on the Cost Variables of the Shipping Market. Journal of Mathematical Finance, 7, 513-518. doi: 10.4236/jmf.2017.72027.